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FINRA Investigation and U4 Disclosure

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Sep 16, 2011 1:11 am

Hi guys,

Long story short, I resigned from my ex-firm and during my notice period, my ex-firm discharged me for breaking a company policy, and marked my U5 with a "discharged" notification and a negative comment. There was no DRP so currently it does not show up on Broker Check.

I recently got a letter from FINRA saying that they are investigating the matter and asked for my response to the comment. It says they want to determine if I broke any rules.

I currently work for another firm, and I have shown them my U-5 and the FINRA investigation letter. I also, worked with a lawyer who helped me draft my response to FINRA.

I have a few questions regarding my situation:

1) Do I need to update my U4 with this investigation. Also, does any U-4 Investigation disclosure show up Broker Check. My Lawyer mentioned I am not obligated to update U-4 but I just wanted to get a second opinion.

2) My lawyer indicated that if we dont hear anything from FINRA in 6 or so months, it indicates that investigation is probably dead - do you guys think thats the case, or does the investigation never dies till the time there is a letter issued indicating such.

3) Also, I plan to file an arbitration against my ex-employer for wrongful termination and expungement, but currently don't have $20-30k to spend on lawyer fees (lawyer says I have 50-50 chance). I can probably do it in 1-2 years after saving some money - my lawyer indicated that filing that late will significantly reduce my chances of winning and we should file within 3 months - what do you guys think?

4) Can someone give me some rough estimate how much this whole arbitration, including lawyer fees in New York, cost - assuming there are 2-3 hearings. I just want to get a general idea.


Sep 23, 2011 11:22 am